“The Intelligent Investor” by Benjamin Graham (1949)
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
If you want to read a book that will give you a reality check of the investing world and its functioning, pick up Benjamin Graham’s “The Intelligent Investor.” Unlike other stock market books, this one is a complete guide on everything a beginner needs to know. It includes an elaborate history of the stock market ups and downs and gives insights into how strategies must be curated.
Graham was a professor and a columnist for the Wall Street Journal. His work has earned him the title of the ‘Godfather of value investing.’ Warren Buffett, another acclaimed finance expert, calls this book “the best book on investing ever written.” He is to the finance world what Sir Isaac Newton is to physics.
Before his death, Benjamin Graham was a renowned professor known as the godfather of investing. Graham published the first edition of this book in 1949, and Buffett himself called that version “the best book on investing ever written.”
What’s unique about this book is its lack of “Rah! Rah! Anything is possible and anyone can do it!” rhetoric. It takes the opposite approach, although it’s not without positive encouragement. It won’t tell you how to make millions, but rather how not to lose your shoes. The author imparts must-read basics to get you started in investing and keep you going for a long time. He provides trading strategies and how to analyze stocks. Also, a comprehensive history lesson on the stock market.
Principles: Life and Work by Ray Dalio
I love stories and Ray Dalio’s story is inspiring. One of the world’s most successful investors and entrepreneurs. Ray shares the unconventional principles that he’s developed, refined, and used over the past forty years to create unique results in both life and business. Principles any person or organization can adopt to help achieve their goals.
In 1975, Ray Dalio founded Bridgewater Associates, out of his two-bedroom apartment in New York City. Forty years later, Bridgewater Associates has made more money for its clients than any other hedge fund in history. Also, it has grown into the fifth most important private company in the United States, according to Fortune magazine.
Along the way, Dalio discovered a set of unique principles that have led to Bridgewater’s exceptionally effective culture, which he describes as “an idea meritocracy that strives to achieve meaningful work and meaningful relationships through radical transparency.” It is these principles, and not anything special about Dalio—who grew up an ordinary kid in a middle-class Long Island neighborhood—that he believes are the reason behind his success.
In Principles, Dalio shares what he’s learned over the course of his remarkable career. He argues that life, management, economics, and investing can all be systemized into rules and understood like machines. Dalio lays out the most effective ways for individuals and organizations to make decisions, approach challenges, and build strong teams. He describes the innovative tools the firm uses to bring an idea meritocracy to life.
While the book brims with novel ideas for organizations and institutions. It offers a clear, straightforward approach to decision-making that anyone can apply. No matter what they’re seeking to achieve.
One Up on Wall Street: How to Use What You Already Know to Make Money in the Market” by Peter Lynch
“The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.”
Who says books give you just theory knowledge? Peter Lynch’s bestseller book, “One Up on Wall Street: How to Use What You Already Know to Make Money in the Market” is a perfect example of how books can be a perfect mix of theory and practical knowledge.
This book is bound to bring out the competitive investor in you. It takes a lot of courage and confidence to excel in the investment world and this book provides you with it in perfect quantities. Lynch’s expertise suggests that young and new investors have the capacity to give competition to the pros of Wall Street. In his book, he not only gives reasons for this claim but also gives its readers a boost to take the big step. In short, this is a perfect book to read before investing for the first time.
But, there are some caveats. He talks about certain companies that were great investments but aren’t necessarily great investments anymore. Also, some of his advice is outdated — such as doing investment research by going to the mall, but can easily be applied to how the world operates today.
Overall his advice is sound. Lynch believes that solid investment opportunities are everywhere. They litter the ground at our feet. We just have to stop walking so fast, pause in our everyday lives, and bend down to inspect the clutter so we can pluck out the most viable options. In doing so, we can beat the pros to the punchline and get in on an investment before the rest of the world realizes its potential.
“One Up on Wall Street” has sold more than a million copies since its release in 2000. The New York Times says Lynch, a renowned investor in his own right, is “in a league by himself.”